leaseoperating3f16calendar
Lessee Accounting
Entered into 4 year lease on 1/1/02, payments beginning at lease inception
FMV equipment					180,000
Life in years					10
There is no purchase option and property reverts to lessor at end of lease term
Equipment cost to Lessor					127,500
Implicit rate					10%
Annual payments of					33,739
First payment is made on 1/1/02, all subsequent payments made 12/31 starting 12/31/02
December 31 year end
Lease type
	Operating, none of financing type lease criteria met
		10%		Lease
Date	Lease Payments	Interest	Principal	Liability
1/01/2002				117,642
1/01/2002	33,739	-	33,739	83,903
31/12/2002	33,739	8,390	25,349	58,554
31/12/2003	33,739	5,855	27,884	30,671
31/12/2004	33,739	3,067	30,672	(1)
	134,956	17,313	117,643

Where does the 117642 come from?